In today’s critical industries, from data centers to gigafactories, the way we manage electrical assets is more important than ever. As the world intensifies its efforts to decarbonize, electricity is poised to play a pivotal role in our future. According to the International Energy Agency, electricity will account for about 50% of global energy use by 2050, necessitating a substantial increase in electric power generation—over two and a half times current levels. This transition, coupled with the growth of renewable energy, adds complexity to power supply, making it more variable and weather dependent.
The growing need for reliable power
Securing reliable electric power is increasingly critical for sectors like data centres, semiconductor manufacturing, and gigafactories. For instance, power disruptions in data centres can lead to costly outages, with over half (54%) of operators reporting significant outages costing more than $100,000 and 16% experiencing impacts exceeding $1 million. Notably, power distribution issues account for about 52% of these incidents.
As the stakes rise, operators must ensure that their electrical assets are dependable to minimize unplanned downtime. Simultaneously, they need to enhance energy efficiency to meet net-zero goals. In Europe, major data centre operators have committed to achieving a power usage effectiveness ratio of 1.3 by 2030, down from the current average of 1.6 under the Climate Neutral Data Center Pact.
Challenges in industries, gigafactories and semiconductor sectors
Similar challenges plague industries, gigafactories and semiconductor sectors, where even a single hour of downtime can cost an average of $10 million. Shutdowns can lead to losses in the hundreds of millions. Compounding these challenges are the current shortages of electrical engineers and lengthy design and build timelines for new facilities. The need for safe, reliable and efficient electrical power has never been more urgent.
A new approach to electrical asset management
Given these pressures, businesses are rethinking their power systems to increase capacity, integrate more assets, incorporate local generation sources (DER) and microgrids. As electrical assets become more critical, the complexity of the underlying infrastructure is growing. Managing these assets with traditional methods is no longer viable. Failure to adapt can lead to outages, inefficiencies, and costly repairs, which not only impact revenue but can also harm a company’s reputation and customer trust.
However, this challenging landscape also presents an opportunity for organizations to adopt a more strategic approach to electrical asset management. At Schneider Electric, we’re helping our customers leverage renewable electric power alongside advanced digital technologies in a framework we call Electricity 4.0. This involves a proactive approach to asset management, utilizing IoT sensors to monitor equipment condition and usage remotely.
The power of proactive asset management
By applying AI-powered analytics to data collected from these sensors, we can continuously assess the health of electrical systems, allowing businesses to predict maintenance and repairs more accurately. For example, a gigafactory that traditionally scheduled maintenance shutdowns every few years can now use real-time data to target interventions based upon actual equipment conditions, often extending maintenance cycles from three years to five years.
Our services provide access to the world’s largest network of electrical experts, available around the clock. In addition to optimizing daily operations, we assist organizations in developing comprehensive electrical asset management strategies. Our teams use insights from analytics to design robust infrastructures that meet the demands of Electricity 4.0, while also advising on investment priorities that minimize waste through circular approaches—balancing repairs, refurbishments, recycling, and repurposing.
Insights from remote monitoring
Our Connected Service Hub has monitored critical power assets over the past year, yielding valuable insights. Notably, we’ve found that proactive asset management prevents critical electrical asset failures for 60% of our customers and reduces fire risks in monitored sites. We successfully postponed maintenance visits from the standard three years to five years for 70% of monitored assets.
Additionally, the use of monitored UPS systems has significantly reduced the need for on-site visits to data centres by 66%, enhancing overall availability.
Motors consume large amounts of energy in many facilities, and these too can be incorporated into the remote monitoring solutions to assist in identifying issues and optimizing maintenance with rotating machines.
Real-world benefits
For instance, at the BASF Beaumont site in the USA, our remote monitoring and expert support have led to early detection of equipment issues, optimized asset effectiveness, increased equipment lifecycles, and reduced operation and maintenance costs. This proactive strategy resulted in a 15% reduction in unplanned downtime, a 10% improvement in Process Energy, and a 10% reduction in maintenance costs.
Partnering for success
At Schneider Electric, we are your partner of choice for holistic asset management. With the largest electrical asset installed base globally, a network of over 6,000 experts, and a dedicated team of 300 data scientists, we are committed to unlocking value from electrification and digitalization.
Our comprehensive services encompass the entire lifecycle of your installation, from site auditing to assessing the installed base to asset planning and design to end-of-life solutions, all while prioritizing cybersecurity and data privacy.
If you’re ready to explore how a proactive asset management strategy can yield quick benefits and a strong ROI, I invite you to connect with me on LinkedIn or complete the form for a complimentary 30-minute consultation. Let’s work together to secure a more reliable and efficient future for your electrical assets!
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